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Monday, August 15, 2005

Indices Testing First Level Support

CANSLIM Investing writes:
After a fairly abrubt, unorderly pull back off the highs in the first couple days, this latest consolidation is actually shaping up to look fairly healthy. Friday's big drop wasn't a major concern considering volume levels were below average and less than the day before.

You see the Nasdaq bouncing off the first level of support of the upward trend line on Friday around 2150. The Naz looks as though it will hold that level, but if not the area of previous resistance around 2100 becomes the next major level of support.
See the link below for charts (with trend lines and supports).
I agree that the next major support is 2100 for Nasdaq. I'm afraid that the 2150 support doesn't hold for long, because other indices (DIJA, S&P 500) don't have the same formation and I think Nasdaq will run with them to lower levels.

Read further:
CANSLIM Investing: Indices Testing First Level Support